Home Warranty Home – 3 Benefits of Home Warranties
I bet you already are aware that a home warranty or home protection plan (like the one offered by First American or Old Republic or BPG home warranty or American Home Shield home warranty company) covers all the working components of a home such as heating, electrical and cooling systems. And that most home warranties expire after one year. But were you aware that most home warranty companies will extend coverage for a full five (5) years? Most homeowners aren’t aware of that – or that the cost to purchase a home warranty can be as little as one dollar a day! That’s right – a dollar a day! Or that a company like BPG home protection plan company will even offer home warranties for investors? It’s true! So imagine the peace of mind your friendly investor-landlord will have knowing that if the air conditioner breaks down during the hot, sweltering heat, a home protection plan company will be sending out a serviceman to repair it!
Why is this important? Here are three benefits as to why to consider purchasing a home warranty also in many states called a home protection plan:
Keeping a home protection plan in place keeps your regular homeowner’s insurance at a low annual rate. Important to know because if you ever do have an item that needs repair on your home, and you call your local homeowners insurance agent and ask to cover it, guess what happens? That’s right – your annual homeowner’s insurance will increase! Just like what happens when you use your car insurance, after an auto accident, your rates most likely will increase, right? But if you have a home protection plan, you pay a modest deductible and the home warranty company takes care of the claim. Obviously if you have 100 claims in one month the home protection plan company may elect to drop you as a client, but they are much more lenient than regular insurance companies.
Home warranties are very affordable! Most home warranty insurance or home protection plans cost about $350 -$550 a year. A bargain if your air conditioning compressor breaks down during a hot summer month and needs to be replaced! Instead of paying about $2,900 for a new compressor, the homeowner pays $65.00 and the homeowner protection plan takes care of the rest! Not too shabby – getting a new air conditioner for $60 bucks!
Peace of mind. Most homeowners gamble their entire savings into a down payment and therefore don’t have much money left over in a contingency fund in case something breaks down in the house. Therefore, it’s nice to know that the home protection company is there to fix the broken or defective item should it need to be repaired. In additon, home protection plan companies can be found in every state of the union, including Alaska, Alabama, Georgia, Florida, Texas, Minnesota, Missouri and other states affected by tornadoes. And as mentioned in Reason #1, the home protection plan can be extended for several years after the initial purchase!
Finally, the last home protection plan benefit: if you are selling your home a home warranty can be used to entice a potential purchaser to choose your home over a competitor’s home. Let’s say for this example that there are two homes that are exactly alike (and yes, I know that NO two homes are exactly alike!!) so come along with me on this one. Two homes, exactly alike, same price, same appeal, but one home offers a one-year home warranty that will cover all the working components of the home. So if you are a buyer, which home would YOU choose? The one with the home protection plan, or the one without? For this reason alone, purchasing a home warranty when selling a home is a good idea.
Below are some links to some of the most popular home protection plan or HPP companies. Comparison shopping does help, as some HPP companies offer monthly specials – for example. little known company called BPG Home Warranty was offering free roof coverage for one year.[see the links on your right]
And Old Republic Home Protection www.orhp.com had a similar sweet deal.
Some home protection companies offer limited coverage on appliances such as washers and dryers as well as stoves, oven ranges, and micro waves. Swimming pools, spas, sump pumps, septic tanks and heating tanks cost a little extra, but are also covered, so do shop around for the best “bang for your buck” for a home protection plan.
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